Tangible Technologies Has a Market Capitalization of $150 Million and 8

question 59

Multiple Choice

Tangible Technologies has a market capitalization of $150 million and 8 million shares outstanding.In order to finance its growth,the firm's management plans to raise further capital through a rights issue.All shareholders will be issued one right per share.For every 4 rights held by a stockholder,they can purchase one share at a price of $15 per share.How much money will this raise,if all shareholders exercise their rights?

• A)$30 million
• B)$150 million
• C)$120 million
• D)$15 million
• E)$37.5 million

---

Definitions:

Embryonic Skeleton

The initial cartilaginous and fibrous structure that will develop into the bony skeleton of an organism during its embryonic phase.

Cartilage

A flexible, rubbery connective tissue found in various parts of the body, providing structure and reducing friction between bones.

Synovial Joint

Capsule-enclosed joint at which cartilage-covered ends of bones are separated by a fluid-filled space.

Muscle Fiber

The cylindrical, multinucleate cells that make up skeletal muscles, responsible for contracting to produce movement.